Ukraine, pro-Russian rebels reach ceasefire deal

MINSK, (Reuters) – Ukraine and pro-Russian rebels reached a ceasefire agreement yesterday, the first step toward ending fighting in eastern Ukraine that has caused the worst standoff between Moscow and the West since the Cold War ended.

The ceasefire deal was struck in the Belarussian capital Minsk along with a deal allowing for prisoner exchanges, deliveries of humanitarian aid and the withdrawal of heavy weapons after five months of a conflict that has killed more than 2,600 people.

Despite some initial shelling in the rebel stronghold of Donetsk after the truce began at 6 p.m. (1500 GMT), the ceasefire appeared to be holding. But many residents and combatants were sceptical that the ceasefire could last long or provide the basis for a durable peace settlement. The two sides remain far apart on the future of the region.

Despite the deal, the European Union slapped new economic sanctions on Russia – the latest in a series of measures aimed at punishing Moscow over Ukraine. But the EU said the sanctions could be suspended if Russia withdraws its troops from Ukraine and observes the ceasefire. A senior EU diplomat told Reuters implementation is expected on Monday.

Some provisions will make it harder for Russian state-owned firms to raise finance in the EU. Diplomats expect them to hit, among others, the oil company Rosneft and units of Gazprom though not the gas firm itself, a main supplier to the EU.

“Human life is the highest value. We must do everything possible and impossible to end the bloodshed and put an end to people’s suffering,” Ukrainian President Petro Poroshenko said in a statement announcing the truce, reached with representatives of Russia and the OSCE security watchdog.

The Kremlin welcomed the agreement, based largely on proposals made by President Vladimir Putin and leaving the pro-Russian separatists in control of vast swaths of territory.

Putin’s press secretary, Dmitry Peskov, urged the sides to build on the deal and seek a permanent political settlement, although many problems remain and an earlier June ceasefire lasted only 10 days.

 OBAMA WARY ABOUT CEASEFIRE

At a NATO summit in Wales, U.S. President Barack Obama, who accuses Russia of arming the rebels and sending in troops to back them, reacted with scepticism to the deal.

“With respect to the ceasefire agreement, obviously we are hopeful but based on past experience also sceptical that in fact the separatists will follow through and the Russians will stop violating Ukraine’s sovereignty and territorial integrity. So it has to be tested,” Obama told a news conference.